A Business Clause within a Will is an important document that allows an individual to direct their assets to a Business Trust. This type of trust is often established in order to satisfy the requirements of Business Property Relief (BPR). BPR is a tax relief that can reduce the amount of Inheritance Tax payable on a business property when it is passed on to a beneficiary.

In order to take advantage of this tax relief, certain conditions must be met. For example, the business property must have been owned and run by the individual for at least two years prior to their death. Additionally, the property must continue to be operated as a business by the beneficiary for at least two years after the transfer.

By including a Business Clause within a Will, an individual can direct their assets to a Business Trust which will hold the business property. This allows the beneficiary to take advantage of the tax relief and minimise the amount of Inheritance Tax payable.